The Wild West of “Squid Game” [Matthias Clamer/Stone via Getty Images]
“Squid Game” over... Halloween is past us, but trends based on Netflix's "biggest-ever" new series aren't. A crypto coin called Squid launched last week at $0.01. The “play to earn” currency professed to let buyers play online games based on the South Korean thriller. Three days later, Squid was up 44,100%, to $4.42. As it gained media coverage, Squid soared 23 million percent between October 26 and November 1, hitting nearly $2.9K. Yesterday it crashed to nearly $0.
Cracks in the honeycomb... There were red flags: a typo-ridden Squid website (“frist game,” “need pay the ticket”) and a leadership team that didn't exist on Google or LinkedIn — like: CEO Kevin Sam, "Founder of Squid Game." (BTW: Netflix reportedly said it was not affiliated with the coin). But Squid isn’t the only parody coin that’s surged recently:
It's a cautionary coin tale… Crypto markets and exchanges lack the controls and fraud protections that the stock market has. But SEC Chairman Gary Gensler wants the “Wild West” of crypto to be regulated in the same way the SEC oversees securities like stocks and bonds. While regulation could take years, the Squid debacle highlights the unique risk of investing in crypto without conducting due diligence.